The 3 Factors That Play A Part In Getting Your Home Sold!

Millions of homes are sold each year, and while each transaction is different every seller wants the same thing - the highest price with the least amount of hassle and aggravation.

Home selling is more complex than it used to be. As a seller you need to be aware of a range of issues and deal with many complex forms. You also need to know that buyer agents represent buyers and are working to get the best deal for their buyer clients.

Successfully selling your home requires experience and training in areas such as real estate, marketing, financing, negotiation and closing – this is the very expertise your REALTOR^® should offer. The 3 major factors that play a part in getting your home sold are:

• Competitive Pricing
• Condition Of The Home
• Effective Marketing Efforts

What is Your Home Worth?

What homes are worth boils down to “what the market says it’s worth.” A home “value” also depends on who you ask: there's the price owners would like to get, the price buyers would like to offer and the point of agreement between buyer and seller that actually results in a sale.

In considering home values, several factors are important:

• The value of your home relates to local sale prices. The same home located elsewhere could have a different value.
• Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population and a limited housing supply, you have a seller’s market, and home prices will likely rise. Alternatively, if the local community is losing jobs and people are moving out, then you'll likely have a buyer's market.
• Listing prices should not be inflated. You should be strategic in setting your listing price and be sure not to overprice your home, because you may not be able to sell it. The longer a home is on the market, the more “stale” it gets, and the more likely that buyer agents will tend not to show it and that buyers will think there is something wrong with the home because it is not selling. If you overpriced your home, you many eventually have to bring the price down to even less than what you could’ve got if it was priced properly in the first place. And you will have lost the initial flurry of interest that new listings generate.
• How quickly the owner needs to sell can affect sale values. Owners who " must" sell quickly will have less leverage in the marketplace. Buyers may think that the owner is willing to trade a quick closing for a lower price - and they may be right. Conversely, owners who do not need to sell quickly may have more marketplace strength.
• Sale prices are not based on what owners " need." When an owner says, " I must sell for $300,000 because I need $100,000 in cash to buy my next home," buyers will quickly ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, the seller will not be able to sell for $300,000.
• Sale prices are NOT the whole deal; look also at terms and conditions. Which would you rather have: a sale price of $200,000, or a sale price of $205,000 but where you agree to make a " seller contribution" of $5,000 to offset the buyer's closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, repaint the entire house and leave the washer and dryer?

How Do You Set a Listing Price?

Because all transactions are unique there is price flexibility in the marketplace. The amount of flexibility depends on local conditions.

For example: you're selling a townhouse and there have been five recent sales of the same model townhouse and prices ranged from $200,000 to $210,000. You now have an idea of how your home might be priced. In a strong market perhaps you can ask for $210,000 or a little more. If the market has slowed, $210,000 may be a reasonable asking price, but perhaps more than you could get for a final sale price.

Here's another scenario: you live in a community of Victorian-style homes, most of which were built in the 1920s. All the homes are different in terms of size, condition, modernization, style and features. In such a neighborhood, an average sale price is just a statistic without much practical meaning. On a single block one home may sell for $400,000 while another is priced at more than $1 million. The average price may be outrageously high for one home and staggeringly low for another.

Knowing what listing price to set for your home can be difficult. That is why it is valuable to work with a REALTOR^®. Because experienced REALTORS^® have handled many transactions, they're familiar with the terms and conditions that went into individual sales, not just published sale prices that may not reflect various premiums, discounts, terms, conditions and adjustments. And, importantly, REALTORS^® know of the latest sale prices among competing houses and can offer that information to the home seller.

How Do You Improve Your Home's Value?

Ideally, you want to be sure that your property is competitive with other homes available in the community. REALTORS^® see many homes and can provide home-improvement suggestions that are consistent with your local marketplace and cost-effective in terms of what you will be able to recoup through the sale.

The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in with the neighborhood but that is not overimproved. For example, if most homes in your neighborhood have three bedrooms, two baths and 2,500 square feet of finished space, a property with five bedrooms, more baths and far more space would likely be priced much higher and would likely be more difficult to sell.

Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments that cannot be recovered from the sale. Furthermore, improvements should reflect community preferences.

Cosmetic improvements, such as carpeting, paint, wallpaper and landscaping, help a home " show" better and often are good investments. Mechanical repairs, which ensure that all systems and appliances are in good working condition, are required to get a top price.

Prepare yourself to sell your home by evaluating why you want to sell, and when to sell and by improving your home and property to enhance its value to buyers.

Working with an experienced REALTOR^® will give you valuable expertise and advice to guide you through the complex process of selling your home.

How REALTORS® Can Help You Market Your Home

Selling can entail a variety of marketing strategies. Your REALTOR^® can assist in marketing your home to potential buyers in several ways:

Marketing Efforts

Your REALTOR^® will execute strategies and programs to get your home sold. Typically this includes placement on the Houston Association of Realtors MLS and real estate Web sites, as well as related marketing, advertising and networking. Open houses, office tours, agent access to the home via the use of a lock box and networking with both local and out-of-town agents are also common.

Much of your agent’s work will be quiet and unseen - yet important. The telephone calls, the work with contacts, the follow-ups with open-house visitors, conversations with ad respondents, the Web postings and other outreach efforts are all part of the process required to sell homes.

Open Houses

There are no universal marketing standards for real estate because marketplaces are localized. For instance, open houses may be common in some communities but rarely used in others.

Your REALTOR^® will hold an open house typically advertises that the home will be open for a given period (e.g., 2-5 p.m. on Sunday). During the open period, your REALTOR^® hosts the home while the you leave for a few hours so that buyers will feel comfortable having a good look around the property and asking questions.

Your REALTOR^® should provide literature, maintain a visitor log and answer questions. By interacting with visitors,he or she will seek feedback regarding the home and opportunities to follow up with prospective purchasers.

The Basics of Marketing Your Home

How to Set a List Price for Your Home

Get Your House Ready to Show Buyers 

 Why Use a Realtor when Selling a Home